Why Would a Company Need a Quick Business Loan?
When you are running a business with sales between $500,000 and $7 million in sales, getting a quick business loan from a bank isn’t the easiest thing to do. Banks often want the owner(s) to have collateral to back up the loan and even when that collateral is there, banks will take 6-12 weeks to approve the business loan. In most cases, businesses are being run with the owner’s capital and a bank loan that isn’t being used, is very expensive to keep in place. As a result, companies often have unique situations that require a quick business loan even when the company is normally profitable.
Some recent examples where Financing Solutions has funded other companies have included:
- A creative design agency with $5 million in sales had completed a major project for a client and was about to bill the final large payment but was very low on cash. The creative design company would be collecting its money in 45 days and needed a short term business loan to make sure it made payroll until the large invoice was paid. The agency went to the bank for the business loan but found out the bank would take too long to approve the loan.
- An experienced Dentist had bought an existing dental practice and wanted to upgrade the outdated equipment. Instead of waiting until he had good cash flow, he wanted a fast business loan from his local bank so that he could move forward with the new equipment now. The local bank wanted a ton of personal assets to back up the business loan.
- A large 25+ year old community health clinic had a delay in getting payment form Medicare due to a glitch in their billing cycle. The clinic needed quick business funding so that they could make payroll.
- A Physical therapy company needed quick funding because the insurance companies that pay 75% of the bills are often delayed 90-120 days, and the owner wanted to make sure he had enough money to make payroll. The practice wasn’t abled to be approved for a business line of credit.
- An established benefits company landed a huge deal but needed to bring on staff to support the new client. The company needed money to make payroll before it could start billing its client for the new services.
In most cases, these and other quick and short term business funding was needed because:
- A delay in payment from their clients
- The onetime need for cash for business improvements
- A mistake that causes normal operations to need additional working capital
The owners of Financing Solutions (www.payrollfinancingsolutions.com) have combined to build over the last 20 years, 7 companies, all of which have been highly successful. Unlike bankers, Financing Solutions understands that there are a lot of quality companies out there that sometimes need quick business funding where the companies will have no problem paying back the money once the problem has been resolved.